The US Dollar Index (USDX) is a key indicator that shows the strength of the dollar against a basket of other currencies. Its dynamics have a direct impact on global markets, including cryptocurrencies.
The influence of USDX on cryptocurrencies
1. Weak dollar and bullish cryptocurrency market:
Historically, the weakening of USDX is accompanied by a capital inflow into risky assets, including cryptocurrencies. This is due to investors seeking alternatives to fiat currencies.
2. Key levels for BTC and ETH:
If USDX continues to decline, the likelihood of BTC and ETH rising increases.
Support levels in the cryptocurrency market may coincide with local minimum points of USDX.
3. Altseason and dollar weakening:
A weaker dollar creates ideal conditions for altseason, when investors start actively entering more risky and less capitalized assets, such as altcoins.
